Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026

RBI/2026-27/103 DOR.RET.REC.85/12.01.001/2026-27 June 08, 2026

Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026

Please refer to the Governor’s Statement dated June 5, 2026, wherein it has been decided to introduce a US Dollar-Rupee swap facility for fresh Foreign Currency Non-Resident (Bank) [FCNR (B)] dollar funds, mobilised for a minimum tenor of three years and maximum tenor of five years.

2. In this connection, please refer to the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 (Updated as on January 22, 2026). It has been decided that fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years mobilized (including deposits that are renewed upon maturity) by the banks from the date of this Amendment Directions till September 30, 2026 will be exempted from maintenance of CRR and SLR.

3. Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and pursuant to Section 42 of the Reserve Bank of India Act, 1934 and Sections 18 and 24 of Banking Regulation Act, 1949, as amended from time to time, and all other provisions / laws enabling the Reserve Bank of India in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.

4. These Directions shall be called the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Second Amendment Directions, 2026.

5. The provisions shall come into force with immediate effect.

6. These Amendment Directions modify the Reserve Bank of India (Small Finance Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Directions, 2025 as under:

i. In paragraph 20, the sub-paragraph “6. Fresh FCNR (B) deposits of minimum tenor of three years and maximum tenor of five years mobilized (including deposits that are renewed upon maturity) by the banks between June 8, 2026 and September 30, 2026 are exempt from maintenance of CRR from the reporting fortnight beginning July 1, 2026 (i.e., based on the NDTL computation as on June 15, 2026) and subsequent fortnights thereafter. The exemption on reserves maintenance is available for the original deposit amounts till such time the deposits are held in the bank books” shall be inserted.

ii. In paragraph 29(5), the words ‘paragraphs 20(3), 20(4) and 20(5)’ shall be substituted with ‘paragraphs 20(3), (4), (5) and (6)’.

iii. In item VIII of the Annex A to Form A,

• the words “Circular dated July 06" shall be substituted with words “[Para 20(5)]" in item VIII.5 and VIII.6.
• the item VIII.7 shall be renumbered as item VIII.8.
• the words “FCNR (B) – 2026 [Para 20(6)]” shall be inserted as item VIII.7.

Yours faithfully,

(Manoranjan Padhy) Chief General Manager